The initial financial statement of Microfinance Institution Limited shows a decrease in profits. According to the unaudited financial report of the first quarter of the current fiscal year, the profit of microfinance has decreased by 11 percent. The microfinance industry has earned a net profit of Rs 2.544 million during the review period. In the same period of the previous fiscal year, the company had earned a net profit of Rs 2.868 million.
The company’s own interest income has increased during the review period. In this period, the company has earned a net interest income of Rs 69.4 million. Similarly, the microfinance firm reduced an impairment charge of Rs 9.976 million in the current fiscal year’s Asar month.
According to the unaudited financial report released by the company, the inactive loans of the company have increased from 4.95 percent to 5.49 percent. The inactive loans of microfinance have increased due to the inability of borrowers to repay the loans, which has put pressure on the profits of microfinance.